Auckland Council agrees to sell down remainder of financial asset portfolio
Tuesday, 20 June 2017
Auckland Council’s Finance and Performance Committee today agreed to divest of the final $130 million contained in its diversified financial asset portfolio.
The fund used the assets of the legacy Auckland Regional Council to establish Infrastructure Auckland, providing seeding funds to address the public transport and stormwater infrastructure deficit in Auckland at the time, and enabled projects like the Britomart Transport Centre and the Northern Busway to proceed.
The council divested $100m of the portfolio in May 2016, with a further $100m to be divested by the end of the 2017/18 financial year.
Once this process is complete, the remaining balance of the portfolio will be $130m, which the committee today agreed to divest by 30 June 2018. The proceeds will be used solely to fund public transport and stormwater infrastructure.
Committee chair, Councillor Ross Clow, says that the decision to divest of the portfolio is a sensible one and will be used to help tackle Auckland’s growth.
“This is a prudent financial decision given the need to invest in our infrastructure needs across the city,” he says.
“The fund was originally set up with the express purpose of funding infrastructure across the region when needed.
“Given the unprecedented challenges Auckland faces, divesting of the remainder of the portfolio and using it to help fund our infrastructure programme is a prudent and sensible financial decision.”
Items 1-8 were administrative items.
Item 9: Review of the Diversified Financial Assets Portfolio
The committee agreed to divest of the Diversified Financial Asset Portfolio with a target completion date of no later than 30 June 2018.
Item 10: Panuku Development Auckland Limited debt to equity conversion
The committee approved the conversion of the $3.1 million capital budget in the 2018/19 financial year into annualised operational budget for the new multi-purpose community facility in Takanini, on the basis of no impact on the general rates for future years.
Item 11: Budget update June 2017
The committee approved converting a portion of the existing 2018/19 capital budget into annualised operational budget for the new multi-purpose community facility in Takanini.
Item 12: Finance and Performance Committee - Information Report - 20 June 2017
The committee received the report.
- Auckland Council